Equity Release Solutions – Choosing the right one

When you are retired from work all you want is to fulfill your unattended dreams. However, your pension money isn’t enough to make your dreams come true. But with releasing equity from your home, you can make yourself tension free. The equity release option allows you to take advantage of your home value, without even selling it or needing to move to a new place. Releasing home equity can provide you with a stable income, cash, or both simultaneously. Generally people have a belief that property can be used as a tool for profitable investment. Everyone who owns a home expects to get a good return on the worth of his property. Thus, equity release allows you to release a part of it, or complete equity on your home for making your dreams come true.

You should keep in minds that the amount of money that come from equity release is totally tax free, and therefore, you can use that amount on simply anything you want. For instance, you can use the cash coming from released equity on making some improvements in your home or making an extension, for purchasing a car, for paying debts and loans, or for spending on your summer trip. You may also use the money for spending time in a glamorous location with your family members, or just decide to spend it on your children or grandchildren. You can use the money in whichever way you want to but first of all you must understand this important financial scheme involving your property.

There are two ways of releasing equity namely, home reversion and lifetime mortgage. In home reversion scheme you can sell a portion or entire property to a person specializing on this or to an investment company. In lifetime mortgage scheme you can get a secured loan against your property. However, if you want to avail the option of equity release you must fulfill some important criteria. For instance, you should be sixty years of age or in some cases fifty five years of age. And your spouse should also meet a certain minimum age. Secondly, you should be the only owner of the property to avail this option.

If you satisfy the above stated equity release conditions, success will knock at your door. But, it is sensible to refer to a qualified financial advisor for an accurate evaluation of all the various schemes.


For information, help and independent financial advice on equity release schemes call our specialist team of advisers or visit http://www.retirementsolutions.co.uk/